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Informist, Sunday, Feb. 1, 2026                                      Tel +91 (22) 6985-4000

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Equity Alert: Shares of capital market cos crack under proposed STT hike

 

MUMBAI--1315 IST--Shares of capital market companies that facilitate futures and options trading were hit sharply after Finance Minister Nirmala Sitharaman proposed a hike to the Securities Transaction Tax on futures trading to 0.05% from the present 0.02% and options premium and exercise of options were both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively. Analysts expect this tax hike to be negative for capital market companies as it may result in a sharp decline in trading volumes. Foreign investments may also be affected after this tax hike, analysts said.

 

"We should wait for the finer print to come out to figure out the full impact of the (STT) tax hike," Pravin Bokade, head of research at IDBI Capital said. The analyst said that the government wants to curb retail participation in futures and options trading, which may explain the hike. Rising tax burden may affect retail volumes severely in derivative trading, the analyst said.     

 

Shares of Nuvama Wealth Management, HDFC Asset Management Co., and Billionbrains Garage Ventures were down 3–9%. Shares of BSE plummeted over 7% and those of Motilal Oswal, which were up 4?rlier, shed most of the gains to trade just 1.5% higher. "The finance minister's proposal to raise STT on futures to 0.05% is structurally negative for the capital market ecosystem, particularly futures and options-driven businesses," SAMCO Securities said in a note. The brokerage expects higher transaction costs to reduce trading volumes, dampen short-term momentum, and lower profitability for active market participants.

 

The Securities Transaction Tax is a direct tax on buying and selling securities in India, which is levied by the government on stock market transactions and collected by brokers. A hike in STT could result in a loss of volumes in the futures and options segments. The hike in STT is, "to provide reasonable course correction in the futures and options segment in the capital market and generate additional revenues for the government," Nirmala Sitharaman said in her Budget speech for 2026-27 (Apr-Mar). 

 

SAMCO Securities also said that foreign investor participation in derivatives may also moderate as post-tax trading efficiency decline, which will impact overall liquidity. "This can create a cascading effect on revenue streams of broking companies, exchanges, asset management companies, and depositories, which are closely linked to market turnover," the brokerage said.  (Eshitva Prakash)

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Equity Alert: Metal cos fall as sharp correction in precious metals continue 

 

MUMBAI--1040 IST--Shares of companies that produce industrial and precious metals were down in early trade Sunday, following a steep correction in prices of precious metals. Shares of companies whose portfolios are focussed on financing purchases and trading of precious metals were also lower. Analysts have said that metal prices were lower due to a deep sell-off on the international commodity exchange, which also prompted a fall in metal prices on the Multi-Commodity Exchange. 

 

Shares of aluminium and copper producer Hindalco Industries were down over 4%, falling the most among other Nifty 50 constituents. A recovery in the dollar index and a sell-off triggered by profit booking have led to a slump in prices of silver, copper, and gold, said Ajay Kedia, research analyst at Kedia Stocks and Commodities. The analyst, however, expects shares of industrial metal companies to recover after the budget presentation as the government is expected to detail capital expenditure plans, indicating heightened demand. National Aluminium Co. was down 7?ter the Februrary futures contract of aluminium traded 1% lower at INR 311.55 per kilogram.

 

Shares of silver metal producer Hindustan Zinc and its parent Vedanta were down 9% and 2%, respectively, and those of Hindustan Copper cracked over 11%. Shares of gold financier Muthoot Finance were down over 5%. Shares of Multi Commodity Exchange of India were down almost 15%. At 1030 IST, the March futures contract of silver fell 7.5% and traded at INR 269,400 per kilogram on the MCX. The April futures contract of gold were down 2.5% on the MCX and traded at INR 148,251 per 10 grams. Copper prices also took a hit, with the February futures contract of copper trading over 4% lower at INR 1,237.10 per kilogram.

 

Kedia said that he expects a further fall in the price of the white metal due to selling pressure internationally. However, in a previous conversation, the analyst had said that demand for gold and silver was fundamentally strong, and this selling pressure was more a technical correction.

 

Exchange traded funds linked to the trading of these metals were also hit. Nippon India ETF was down over 12% and ICICI Prudential Gold ETF slumped nearly 8%.  (Eshitva Prakash)

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Equity Alert: Indices open higher ahead of FY27 Budget; metal, IT cos fall

 

MUMBAI--1003 IST--Benchmark indices opened higher ahead of the Union Budget for 2026-27 (Apr-Mar), which Finance Minister Nirmala Sitharaman will present in Parliament later in the day. Soon after, the indices gave up gains and were volatile. Metal and information technology stocks were the major drags. At 0956 IST, the Nifty 50 was 25315.45 points, down 5.20 points or 0.02%, and the BSE Sensex was at 82316.32 points, up 46.54 points or 0.1%. 

 

Sun Pharmaceutical Industries, Oil And Natural Gas Corp., and Bharat Electronics were the top gainers among the Nifty 50, up 2?ch. The shares of the pharmacuetical major rose after the company reported an over 8% growth in its consolidated net profit to INR 33.81 billion, beating analysts' estimate. Bajaj Auto rose over 1%. The December quarter net profit of the company was at INR 25.03 billion, up marginally. The stock rose after Nuvama raised the target price on the stock by 6% and upgraded the recommendation to 'buy' from 'hold'.      

 

Hindalco Industries was the worst hit, down nearly 4%. Followed by shares of Infosys, Tata Steel, and Nestle India, which were down nearly 1?ch and were among the worst hits. Information technology stocks--Tech Mahindra, HCL Technologies, and Tata Consultancy Services--were down 0.2-1.0%.    

 

Most of the metal stocks were the laggards. Hindustan Zinc fell 10% and hit the lower circuit. The stock was the worst hit in the Nifty 200 index. Shares of National Aluminium Co. were down nearly 10% followed by Vedanta which rose over 6%. Hindustan Copper was the worst hit among the Nifty 500 constituents, down over 16%.

 

All broader market indices were in the red, with Nifty Smallcap 50 and Nifty Smallcap 100 down over 0.2?ch. The fall in the shares of the Multi Commodity Exchange of India dragged down the Nifty Smallcap 50. The stock of Multi Commodity Exchange of India was among the worst hit in the Nifty 500 index.  

 

NTPC Green was the top gainer in the Nifty 200 index, up nearly 4% and IFCI was the top gainer in the Nifty 500, up nearly 9%.  (Adhithya Aji)

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Equity Alert:  Indices seen volatile; Budget allocation to set direction

 

 

MUMBAI--0853 IST--Benchmark indices are expected to be volatile on the day of the Union Budget presentation for 2026-27 (Apr-Mar). While analysts see limited chances of a meaningful increase in expenditure, they said there is a chance of higher expenditure plans for defence, railways, and renewable energy companies. Volatility is also expected on account of the new US Federal Reserve Chair nominee Kevin Warsh, who is seen as a relatively hawkish pick for the apex bank's top post, according to various media reports.

 

The government may consider a reduction in the long-term capital gains tax and in the securities transaction tax, which will be positive for capital market-linked companies, as it could increase the number of investors in the equity market. Analysts are also expecting some relief for the textile sector, which has been hit hard due to US tariffs. The Budget is expected to provide incentives to private sector railway-related manufacturers, especially for advanced components like braking systems, signalling gear and high-speed bogies, The Sunday Guardian reported. Banks may benefit from higher allocations across sectors as it may help with raising demand for loans. Announcements related to increased support for micro, small and medium enterprises will help expand loan advances by larger banks, according to analysts. Higher allocation to agriculture could benefit banking stocks.

 

Nuvama Institutional Equities has upgraded their recommendation on Bajaj Auto to 'buy' from 'hold' earlier and raised the target price on the stock by 6%. The brokerage expects a 9% sales compounded annual growth rate over FY26 to FY28, led by a 7% growth in domestic segment. The brokerage expects the company's exports to grow at an 11% compounded annual growth rate, supported by better demand across Latin America, Asia, and Africa regions.

 

Nuvama has also upgraded Sun Pharmaceutical Industries to 'buy' and raised its target price on the stock over 4% on account of better-than-expected December quarter earnings. The brokerage expects the recent fall in the company's shares to provide a good entry opportunity for investors. 

 

Equity markets in the US closed lower on Friday as investors viewed President Donald Trump's nomination of former Federal Reserve Governor Kevin Warsh as a hawkish choice to succeed Federal Reserve Chair Jerome Powell, Reuters reported. Warsh is expected to favour lower interest rates but stop short of the more aggressive monetary policy easing linked to some other potential nominees, according to the report.  (Eshitva Prakash)

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Equity Alert: US indices end lower Fri; mkts assess Trump's new Fed nominee

 

 

MUMBAI--0744 IST--The US markets ended lower on Friday, with the S&P 500 posting losses for the third consecutive session. Technology stocks fell for the session. Investors assessed corporate earnings and US President Donald Trump's nomination of the next US Federal Reserve Chair.

 

Trump announced Kevin Warsh as his pick to replace the current Fed Chair Jerome Powell. "I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump was quoted as saying by CNBC based on a Truth Social Post. This came as a relief to many who were concerned over the independence of the country's central bank as Warsh is likely to push for lower rates in the short term, but the markets believe that he would not always follow the President's direction and will be able to maintain credibility.

 

Shares of Verizon Communications surged 12?ter the company's financial results beat analyst expectations and provided a strong outlook for their earnings for the entire year, CNBC reported. Shares of Apple ended slightly higher after moving between gains and losses. Apple's financial results beat expectations, with the company reporting a significant surge in iPhone sales. Shares of Microsoft ended nearly 1% lower after the stock shaved 10% for the session post earnings on Thursday. Thursday marked the worst day for the stock, which erased more than $350 billion from the company's market capital.

 

Despite the weak session, the indices posted gains for January. The S&P 500 and the Dow Jones index gained over 1% and 2% during the month, along with the NASDAQ, which gained 1%.  

 

Following are the closing levels of US indices Friday:  

 

Index	Level	Change in %
S&P 500	6939.03	(-)0.43
NASDAQ Composite	23461.82	(-)0.94
Dow Jones Industrial Average	48892.47	(-)0.36

 

(Akshat Saksena)

 

US$1 = INR 91.98

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

 

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